Mixed pricing in oligopoly with consumer switching costs
نویسندگان
چکیده
منابع مشابه
Consumer heterogeneity and pricing in a duopoly with switching costs∗
It is well-known that switching costs may facilitate monopoly pricing in a market with price competition between two suppliers of a homogenous good, provided the switching cost is above some critical level. We show that introducing consumer heterogeneity tends to increase the critical switching cost and thereby reduce the stability of the collusive outcome. A testable implication is that widesp...
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We conduct an experiment to compare equilibrium and alternative solution concepts in a model of oligopoly pricing. We observe considerable heterogeneity across duopoly markets: some duopolies manage to sustain collusive prices, while others compete even more vigorously than equilibrium theory predicts. There is much less variability across four-seller markets. In these the level and dispersion ...
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It is well known that switching costs may facilitate monopoly pricing in a market with price competition between two suppliers of a homogenous good, provided the switching cost is above some critical level. With heterogeneous consumers and incomplete information about individual consumers’ types, monopoly pricing entails second-degree price discrimination with inefficient contracts for low dema...
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Customer switching costs are an important factor in account-based services such as telecommu-nications, financial, insurance and brokerage services. In these businesses, existing customersincur significant costs if they switch to another provider. Such costs include physical config-uration and installation costs, contractual costs (e.g. termination fees) and cognitive costs ofle...
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Multi-store retailers have the ability to offer different prices based on the geography of their stores. They sometimes do, but often only to a limited extent. This is observed in home improvement retailing, where the large retail chains charge different prices nationally but opt not to set prices store-by-store or even by market. Instead, prices are assigned to zones spanning several markets t...
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ژورنال
عنوان ژورنال: International Journal of Industrial Organization
سال: 1992
ISSN: 0167-7187
DOI: 10.1016/0167-7187(92)90004-i